Following three consecutive weeks of gains, the Malta Stock Exchange (MSE) index fell 0.92 per cent, closing at 3,493.849. The decline was mainly due to significant losses in the share prices of Bank of Valletta plc (BOV) and Malta International Airport plc (MIA).

Out of the 16 traded issues, gainers and losers tallied at five, while six closed unchanged. Turnover for the week shrank by a further 29 per cent, from €602,000 to €426,000.

Fimbank plc shares headed the list of gainers, appreciating by 3.9 per cent to $0.765, after five deals of 5,200 shares. The performance reflects the price adjustment following the bonus issue of one share for every 10 owned. The previous price at which the banking equity last traded prior to the ex-bonus date on April 4 was $0.7636.

Trading in BOV led to a complete reversal of the previous week’s three per cent gain, as three bouts of selling pressure pushed the equity’s price down in anticipation of the bank’s interim results published last Friday afternoon. A total of 55,261 BOV shares were traded in 26 deals.

The group registered a pre-tax profit of €50.7 million for the six months ended March 31, 2014, compared to €64.6 million in the same period of 2013. During the period under review, gains attributed to external factors, namely fair value gains and contribution from the bank’s insurance business, were €11.7 million below those earned during the comparative period.

Core profit for the period fell by €2.2 million, or five per cent, when compared to March 2013. Net interest income for the period dropped seven per cent to €61.6 million while net commission and trading income rose seven per cent to €35.4 million.

The company announced that the board of directors declared an interim dividend of €0.0425 gross per share (net of tax €0.0277 per share), payable to shareholders on the company’s register as at May 8.

The week’s most traded equity was HSBC. A total of 64,698 of the bank’s shares changed hands in 31 deals, lifting the equity’s price by 0.4 per cent to €2.15 – a three-week high. This performance reflects the theoretically adjusted price of one bonus share for every nine owned.

Lombard Bank plc shares traded flat at €1.68 over three deals of 4,080 shares. The bank’s AGM was held last Thursday, at which all ordinary resolutions on the agenda, including the formation of the board of directors, were approved.

Middlesea Insurance plc traded on a similar volume, leading to a 3.3 per cent rise in price to €0.94. Investors who buy Middlesea shares by Wednesday will be entitled to the €0.045 gross dividend per share.

Following the announcement of International Hotel Investments plc’s financial results for the year ended December 31, 2013, its share price rose 1.2 per cent to its two-month high of €0.84 – after four deals of 6,044 shares. The group registered a loss before tax of €4.03 million, compared to a loss of €11.38 million in 2012. Profit after tax for 2013 was reported at €266,000 compared to a loss of €10.4 million in 2012. Revenue for the period under review amounted to €123.73 million – a rise of 4.4 per cent from 2012.

All the group’s hotels, except for the one in Prague, registered an increase in revenue over 2012. The highest gain was in the St Petersburg hotel and commercial centre, with an 18 per cent growth in revenue. The net interim dividend of €0.03 per share declared recently will be paid to all company shareholders as at tomorrow.

Another company publishing its financial results was RS2 Software plc. The group registered a pre-tax profit of €4.26 million, compared to €3.15 million in 2012. Revenue for the year rose by 33 per cent, from €10.64 million in 2012, to €14.13 million.

RS2’s board of directors announced that at the annual general meeting, a final net dividend of €0.0235 per share will be proposed – payable to all registered shareholders as at May 12. The board will also be recommending a bonus issue of one share for every 17 owned.

Following the announcement, the IT stock traded in the €2.28 to €2.418 price band, and settled at €2.41, a 0.4 per cent decline. €88,000 worth of RS2 shares were traded in 15 deals.

On the other hand, 6PM Holdings plc notched 0.7 per cent higher to an all-time high of £0.755 – over a relatively thin volume of 1,357 shares across trades.

Dragging the index lower was MIA, whose share price fell 3.1 per cent, or €0.071, over one deal of 1,000 shares on Tuesday – being its first day of trading since the equity turned ex-dividend the previous week. In total, 5,100 shares were exchanged in two deals.

Go plc fell by a marginal 0.05 per cent to €1.999 as a single transaction of just 500 shares was struck.

Heading the list of fallers was Santumas Shareholdings plc, whose shares plummeted 9.1 per cent after one deal of 4,425 shares.

Other non-movers for the week were Simonds Farsons Cisk plc, Grand Harbour Marina plc, Maltapost plc, Island Hotels Group Holdings plc, and Malita Investments plc.

In the corporate bond market, 16 issues were active, of which six advanced, another six lost in value, while four closed unchanged. Turnover fell 65 per cent to €224,000, where the six per cent AX Investments plc euro 2024 was once again the most traded issue, representing 29 per cent of total trading value.

Meanwhile, in the sovereign debt market, turnover increased tenfold, to €27 million, of which the Five per cent MGS 2021 (I) and the 5.2 per cent MGS 2031 (I) issues accounted for 90 per cent of total turnover.

Out of the 19 traded stocks, seven slipped, 11 gained ground, while one closed unchanged. Most of the gains were in longer-dated issues.

This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and a member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.